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With the clock rapidly ticking down to zero, Greek officials lobbed a Hail Mary today.
Specifically, they proposed additional tax increases and spending reductions to secure urgently needed aid from their European creditors. The new plan would modify pensions and value-added taxes in such a way that would mollify Europe, but also not provoke a backlash in Prime Minister Alexis Tsipras’ own Syriza party.
Euro-zone finance ministers didn’t sign off on the proposals at their emergency meeting today. It broke up without a concrete deal. But the head of Europe’s finance group, Jeroen Dijsselbloem, took a much more optimistic tone in post-meeting comments – suggesting a deal may be reached before the week is out.
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| Greece’s Syriza party has submitted a proposal to creditors in an effort to prevent a collapse of the country’s finances. |
Markets were clearly happy at the renewed signs of progress. Stocks jumped around the world, while credit markets calmed down, too. But the flood of money out of the Greek banking system showed no sign of letting up.
Withdrawals were so heavy in the last two business days that the European Central Bank had to raise its Emergency Liquidity Assistance limit again by roughly 2 billion euros. That was the third such hike in less than a week. Official capital controls haven’t been implemented … yet. But banks are “unofficially” limiting withdrawals to 3,000 euros, according to some reports.
Bottom line: Markets remain on a knife’s edge. We can easily swing 100, 200, or more points, depending on the latest batch of headlines coming out of Europe. Frankly, I’m sure you’re as sick of this as I am – and would rather get resolution one way or the other ASAP. The good news is, that appears to be forthcoming over the next couple of days.
| “Markets remain on a knife’s edge.” |
So what do you think will happen? Is this latest proposal the breakthrough Europe needs to move on? Or are we going to be right back in the soup again soon? Do you think other countries besides Greece are going to run into the very same debt problems? Or is this going to be the end of the European debt crisis? I’m very interested in hearing your thoughts over at the website.
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Meanwhile, in response to the pre-weekend wrangling over in Europe, many of you weighed in already.
Reader Fred1 said: “The situation in Greece is very bad, and their Socialist leader behaves like OUR Socialist leader: More spending and more borrowing when the larder is empty.
“Well, the end of the road appears nigh for Greece now and it looks like it will be time to pay the piper. No man, no country and/or no entity can continually spend significantly more money that it makes, and these bank runs will be just the first of many bad things coming for Greece.”
Reader Alinn picked up on that theme as well, saying: “The Greek government has its head in the sand about their financial crisis. From my experience with Greeks, they are very arrogant and believe they are entitled to get what they want.”
Reader Jim said it’s important to view the crisis with an eye to geopolitics. His take: “For over one hundred years, the Europeans have used Greece as a barrier against expansion from the East. First the Ottoman Empire, then the Communists. The possibility of the Russians or Chinese occupying Greek naval bases is unthinkable for them. This isn’t about economics, but geopolitics. They will deny reality and figure out a way to kick the can further down the road.”
Reader Tom said he’s not all that concerned, even if Greece does default. Why?
“American markets have already priced in a Greek default. It’s old news. The question is, if Greece does NOT default, how will it affect the markets? The Fed?
“Greece is a fairly small country (11 million people or so) and has little impact on most companies. It seems to me that the pressure now is all on Germany to make a deal. In most scenarios, the U.S. stock market will be largely unaffected by what happens to Greece. Buy the dips.”
Thanks for your input. If you haven’t had the chance to contribute yet, I urge you to do so at the website.
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Taliban forces launched an attack on Afghanistan’s Parliament building in Kabul, using a car bomb and rockets. But they were reportedly rebuffed with no deaths reported among Parliament members or security forces.
Did you watch golf this weekend, and if so, was it a good tournament? What do you think of the latest health-care mergers – are they going to limit consumer choice? Any other stories you want to weigh in on? Then make sure you go to the website when you have a minute.
Until next time,
Mike Larson
Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.
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Speaking of “Hail Mary’s ” Greece now has Russia in its backfield with a proposed oil pipeline and possible terminal. To quote Yogi Berra, “Tain’t over till it’s over. “
Besides, this is more entertaining than summer baseball.
I am inclined to place more weight on the geopolitical aspect than the raw economics – it seems to be a case of which stokes the greater fear – continued bad behavior from Greece or having a Russian encroachment in the Mediterranean?
To create a US-centric context – how much would we be willing to pay Canada to not permit a Russian base in Nova Scotia? The European metric may be similar.
Somewhere in my memory a song was written about “immovable objects”. I think the BANKS that loaned money to Greece, Italy, Poland, Spain, etc. absolutely know what is going to happen, and if Greece goes back to the Drachma–the flood gates have opened.
This nightmare has being going on for so long, it is time to “Slay the Dragon”. Where is St. George when you need him?
There is a German saying–and I wish that Frau Merkel and her associates would pay attention to it–that goes “Better a frightful end than endless fright. It ought to be obvious that this is heading toward bankruptcy and a Grexit from the Euro. Why postpone the agony when delay will only worsen the situation. Greece has no more chance of paying for its needless past spending sprees than John Calvin has of being elevated to Sainthood by the Catholic Church.
I see the simularity.
Thanks for the comparison to Calvin. Maybe you could make the comparison to the USS paying it’s obligations.
Watching golf is like watching Greece – even if the ball goes in the hole, the same ball comes out and you have to do it again ending up where you started.
Yes, and they have been getting an unlimited number of “Mulligan’s”!!
Yes I think there will be another fudged deal the can has been kicked down the road for 7 years now so why not another kick.
The Austrian Formula 1 race was more interesting than the same Greek boredom.
Greece has been a failure for 2,000 years. It had it’s run…it’s over.
It’s a tiny, nothing country. Whatever happens there means nothing.
Let it die like it’s neighbor Albania.
Anthem is making a bid for Cigna, as Mike mentions. Seems to be another case of government actions resulting in Big Businesses becoming even Bigger as they consolidate to deal with increased regulatory red tape. No doubt the merger will also result in a sizable number of workers losing their jobs, as mergers usually do.
Greece: it’s the world biggest pyramid (Ponzi) scheme: getting loans to pay off earlier loans, ad infinitum. MADNESS!
eureka!
It is confusing to me. Greece accounts for maybe one percent of the world economy, and defaults on it obligations approximately every four or five years. Is it just media talk, or why should the world even care about their situation ? Maybe they could merge with Germany and get some better management of finances and resources.
hahahaha you made my day thanks.
Hi Norman,
Lets hope that this is not the beginning of another Socialist government..
If things get bad enough…. you can do things that you would not normally be able to do.
Let me quote a fairly recent statement by a US politician..
“Never Let a good crisis go to waste”
ATHENS, I’m writing from Greece.The facts are: GDP from 245billion Euros to 185 billion Euros from 2010, 1,5 million people are jobless from 11 millions, 1 in 2 young persons are jobless, pensioners lost 40% of their pensions, workers lost 40% of their salaries,taxes increased in a huge amount, to pay our debts to our creditors.If you see any arrogance in all these facts please give me a call.I can’t stand to hear stupid comments from stupid people. My love from Athens Greece, Alexander Chatzopoulos.
Don’t want to scare anyone but the truth is the US is almost as bad as Greece. We only have $US 250 billion paper dollars in circulation, less than the GDP of Finland. Read Bill Bonners book “The Great American Credit Collapse”. He says “billionaires are thought to be hoarding an average of around $600 million in cash each…” Our system is all built on skyrocketing debt and credit that very few can “repay” so it’s a house of cards. Once people start withdrawing dollars, the ATM’s and Banks will close since they don’t have real dollars to backup the deposits! The stock market will close and people will not be able to withdraw their funds. The rioting will start and make Baltimore and Ferguson look like a Girl Scout smores party. Keeping watching Greece and others will follow. All wars and crisis start will a “small” event.
Hi Steve,
Glenn Beck was warning us five years ago.. to start stockpiling non-perishable food and…. yes… even cash, (if not silver or gold)…. for the times to come, when the food supply would grind to a halt when suppliers could not buy and transporters could not fuel their vehicles to deliver what the consumer could not buy with a credit card.
At the very least, you should be able to struggle through a month or two, while things get sorted out..
You might even have to feed a few neighbors who might otherwise knock down your doors to eat.
Good luck to Greece in this test. We might learn something.
Yep Steve, it’s coming, I just don’t know when.
The corruption of the system at work lies in the fact that banks can create money out of thin air, to lend cash to others, through fractional reserve banking fraud. They then over lend to over-burden individuals, countries, with an oppressive load, and proceed to pillage the wealth and resources of a country, while socializing the risk of bad loans to the general public. Bad loans should be treated as insolvency and the banks wipe the slate and the indebted start a new. It does not mean that over-borrowing is fully excusable, but these are predatory and onerous practices, and we once had usury laws and the like. Mario Draghi in Goldman Sachs prior to his current position seems to have been central to this scheme. I say wipe it clean, let the bad bankers eat the losses of the bad risks they took, and let Greece start fresh.
no way jose!
Unfortunately, we Greeks used to have the banks as creditors(2010),now (since 2012) we have European citizens as creditors,thanks to IMF and Angela Merkel, so we can’t say no we are not going to pay European citizens.This was the big trick,from IMF, Merkel and our idiot politicians to save the bankers.Now we will pay the European citizens,whatever it takes as Mario Dragi says.My love from Athens/ Greece.
I have read that a great deal of the suspect paper has already been taken off the banks balance sheets by the various EU governments. As usual, the taxpayer will get the shaft.
A) I have a bad feeling that all the Euro-zone is doing is the political expedient thing and pushing the Greek debt problem further down the road hoping eventually it will magically disappear on its own. Just keep kicking it down the road and leave for the next generation, politics as usual, don’t solve just let it grow. B) Health Insurers buying each other, just look at the offer. How can tens of billions of dollars be financed without massive cuts and rate increases? The money going into the insurers comes from the people being insured, and being invested, the outflow comes from investments to pay the costs covered by the policies. Ad the money borrowed to pay for acquisition and it can only mean higher rates or less benefits. I can’t see where merging assets and combining operations will result in billions of dollars in savings needed to pay for this. Look what happened when Wachova bought Gold West.
No comment, just questions. What would happen if Greece withdrew from IMF and EU, and said the loans were made when they belonged, but were no longer collectible? What would occur if Greece aligned itself with the BRIC countries,particularly Russia and China?
Hi Thomas,
I believe Greece would then have to raise interest rates and try to attract foreign investment from those who wanted to buy some Greek Seafront Property..
Who has the money to do such a deal.
The Euro sounded like a good idea at first, but it took away the autonomy
of an individual Country to make adjustments in it’s own currency value in order to
balance the books.. Now it is like having a big family, where the more responsible siblings and Parents try to convince the teenager to stop buying so many video games
and taking holidays on the credit card.
At least with their location they won’t freeze in the dark this winter.
The Family Garden, if they have one… will be very in demand to survive.
wait and see!
Greece is a big problem for Greece but is a very small fraction of the world GDP It will have no lasting effect on the Market
If Greece leave Eurozone , and don’t pay its debt, think what will happen in bond market, in forex market and and the end in stock market. Just use your imagination.
Greece may get their can kicked down the road again but they will milk the situation until they are up against the wall and have no other choice. So if they can hang on for another month or quarter reaping all the benefits of living on borrowed money like us, I think they will finally agree to something the EU wants but not live up to it.
This whole, great big Greek problem was something on the order of 2 billion dollars annually. We give Israel 3 billion dollars every year in foreign aid. This huge Greek problem has been blown way out of proportion. If we (the USA) and the financial markets are so worried about Greece and the EU, why don’t we just adjust the way we allocate our foreign aid dollars so we can give Greece the lousy 2 billion dollars they need to make everyone happy?
Greece’s debt is about 330 billion USD. 2 billion a year is nothing. We are looking forward from Greece for your aid.Every hero is welcomed.Love from Greece.
Greece will default on its obligations — it’s not possible to get through the Greek parliament the kind of reforms the EU wants, and do so permanently. The default to public sector creditors will happen on June 30. The next default will be on Greek bonds owed to Greek banks, in mid-July. That will be the final blow to the Greek banking system, setting off the crisis that leads to capital controls (which may come sooner) and exit from the euro.
The real question at this point is whether Greece will be allowed to stay in the EU after it leaves the eurozone. It should be, and it should get some aid to ease its exit and prevent any more attempts to make nice with Putin (who can’t and won’t provide money anyway).
Simple solution for the Greek crisis – Apple should buy the country! It would cost them about what their coffee fund amounts to for a month ( remember, they drink cappucino latte’s, not the normal type of coffee). I dont know what they would do with the country once they bought it ( hold conferences on a different island every year, set up factories, etc..). It would probably be a terrible investment but all the investors in the world ( except Apple investors) would thank them for it. This one simple move would allow the stock market to move on ( besides, what’s all the fuss about? The province of Alberta ( in Canada) has a bigger GDP than all of Greece – )
The debt of USA is around 18 trillion U.S. Dollars.Which company from which Galaxy is going to buy USA?Probably there is a company as Apple in some Galaxy of the universe somewhere which have for coffee money 18 trillion U.S. Dollars. Love from Greece.
I keep hearing prejudice when there are problems in all countries, my mother said those in live in glass house’s should not throw stones.
Complain about Greece but then reflect on the corruption, fraud and downright greed we have here in corporations like salaries in the hundred’s of millions, even a billion for the CEO of one bank. Am I wrong or are these corporations owned by the shareholders not the executives who are essentially hired to run them.
Lets look at politics American, I see ads trying to tar and feather people who decided to come into politics to make positive changes and found this to be hard if not impossible task.
Look at crime in America were the jails are packed and its a business making money.
Maybe don’t complain about other countries..
Good healthy private enterprise drives any economy or our own family, it creates jobs and empowers people, perhaps this is what we should strive for not complaining.
Does the economy of Greece or prosperity of its people affect us yes, when others suffer it ultimately affects us.
The Greek answer that I read is laughable. Tax the rich and stick more taxes on the businesses, in order to avoid cutting pensions and such. If you add taxes to business, they have to add it to the cost of what they sell, thus the consumer pays more, this would translate into a pension cut. If you tax the rich you are taxing a small percentage of the population, in many cases those that help provide jobs. Think Henry Ford, he became very wealthy, but along the way created hundreds of thousands of jobs. Squeeze the rich and they will loose incentive, or go elsewhere. What should be done will never be done, it will not even be entertained. Tax the cause,and prevent it’s continuation. Taxes are generally speaking theft, redistribution of other’s money. Examine luxury tax, this tax potentially reduces jobs, and product sales, but it sounds good, tax the rich.
The problem in Greece is that the pensioners already lost their income by 40%. You can’t cut more.The pension funds are completely public in Greece.Love from Athens/ Greece.
I have read, perhaps incorrectly, that the pensions begin at age 45 and are still five times bigger than the European average.
Sorry but this is incredibly crazy.There are some cases, where a guy who started working at the age of 20, could take his pension at the age of 45, after 25 years of service( not the whole pension but 70 % of the pension), mainly in the army, police forces etc. Generally women get their whole pension at the age of 60, and man at the age of 65.I admit, there were some problems in our public pension system, but we are trying to solve these problems.In Greece, 65 % of pensioners live under the border of poverty, and the pensioners in Greece get 70 % of the average European pension.All the other things who hear about rich Greek pensioners are propaganda and for laugh, believe me.
Hi Jake,
Taxing the RIch is what is done as elections are approaching…
Everybody gets ONE vote and there are more poor to vote.
The problem is that the Rich can move AWAY.. and the next level of taxpayers has to
refill the coffers. Too bad the original headline was not “Tax The Middle Class”..
That would remove the present government and begin the Hope And Change
sheer stupidity-Greece is a TINY nation with a TINY economy-let it go-it has no REAL effect on the overall economy. And you will be doing Greece a favor-the sooner it is cut loose , the sooner it can re-organize and get out of its never-ending debt cycle.
If Greece leave Eurozone, all the well known greedy funds and Wall Street heroes,will attack to Euro and to remaining European countries, and the party will start.The 2008 financial crisis will look like a fresh chilly wind, next to what will happen.Love from Greece and start thinking globally and try to understand the relations between all the markets ( bonds, forex , stock and commodities markets).
As one of the first 24 Portuguese MEP’s, from Jan1986 to Jul1994, I’ve seen similar movies before. The Europeans drag their feet, but they ultimately reach an agreement. All this will be over by next Monday — business as usual. I remember that in the late nineties, in the European Parliament, Greece was pointed out by the “troikans” as an example of growth, democracy and prosperity. What made them change !? Their greed or the Greeks??
US OPEN:
Exciting golf on an incredibly tough course. It helped a player if he had a little ‘mountain goat in him; they said only 15% of the course was flat! The constant change in the leader board spoke for itself as the score-closeness of those players throughout made for great golf. Too bad some of golf’s best whined about the course when they did NOT
win. ;-(
More pain!!! Bureauaocies are organically incapable of improving themselves!!!!!
The arrogance of the Greeks will eventually be their downfall. They live in a world of expected entitlements, so much so, they have lost all will to do an honest day’s work.
Where else would you find a partnership where several members contribute little to the cause. Such partnerships get rid of those who fail to contribute. There is much blame to go round however, as the concept of the union was ill conceived from the start.
It is likely that a “solution” will be found to the current impasse. All that means is that once again the can gets kicked down the road.
It just seems that where ever one looks, the powers that be are incapable of finding real and meaningful solutions to a host of problems. My question is “how did those people get to be in charge?” – where oh where are the voices of reason out there?
There are circumstances pressuring each of the two sides which impede making a compromise. The most basic problem for the European community is competition from Asia which causes deflation due to ever lower cost imports and restricts exports. Labor laws are so inflexible in most of the Eurozone that the only way that most companies can survive is by borrowing more at artificially low interest rates. That has been going on for three decades which to a great extent explains how the ratio of debt to GDP has climbed to a point where it has become critical to pretend that the stability of the whole system is not precarious.
Greece is simply the most exaggerated example of a generally degenerate picture. Even the IMF admits that the Greek debt has grown to the point that a severe write down is inevitable. But if that is admitted and Greek demands are met, Portugal, Italy and Spain will quickly morph into such a big problem that the whole house of cards will collapse. If Greek demands are not met, decades of suffering await Greece. There is no viable solution either way.
If Greece’s demands are not substantially met, and she is ejected from the E.U. she may well look for aid elsewhere, such as Russia of China, and may very well resign from NATO. Remember she is religiously/culturally Orthodox, with ties to the Russian church. Mr. Putin has already stuck his nose into the issue. I’d be curious as to Mr. Chatzopoulos view of this.
Dear Mr Burton, 80% of Greeks want to stay in Euro and E.U.We are paying our debts 5 years now, in 11 million population we have 1,5 millions of unemployed, 40 % drop in GDP, in income and huge amounts of new taxes every year.We just want to breathe.There is no issue of arrogancy,or leaving NATO or EU.President , Mr Obama is helping Greece as much as he can against some lunatics who want every year more and more from us.He is next to us in this confrontation and we appreciate what he is doing.Mr Obama is a very clever person and he understans very well what is happening and what can happen in world markets if Greece pushed too much, in contrast with some EU leaders as Mrs Merkel who leaves in her dream world.
OK Alex,tell us how you would get Greece out of the **** cos nobody else does,it makes me laugh,Greece is up to their necks in it,and they are demanding a better deal.As one person said on TV they wish they could discuss the problem with mature ,intelligent people.The Greek finiacal minister is a joke,spouting this is a EU plot,and they do not want us to improve.I suppose the Greeks are expecting the EU to write off their past loans.
Dear Ian, not to write off the loans , but to reduce the interest rates and make extended in time the capital payments.Beleive me the memorandum from IMF, ECB and European Commission it is not working.In 5 years Greek GDP lost almost 35%, from 235 bil.Euros to 185 Bil. Euros. Salaries and pensions reduced almost 40%, 1,5 million unemployed in a country with 11 million population.If they push us to reduce our GDP with austerity measures, how we can pay back our debts?Where we can find money if the unemployment is too high, the VAT tax is 23%?Even President Obama warned the Europeans and IMF, that you can’t squeeze more the Greek economy.The problem is that they do not want to accept that they did a huge mistake 5 years ago and they are supporting their mistake still now.
You’ve got to be kidding.
This whole “Greek Thing” is political theater designed to distract from real issues that are now flying under the radar! Beware of what is not being obsessed over!!
Nothing can save Greece but its own willpower to cut expenses and start paying down its debts. Has anyone seen any sign of this? And what about our own problem with self control in the U.S?
We already pay our debts 5 year in a row, every single penny.Only this year , till now we paid 12 billion euros, and till the end of 2015 we will pay as much as 15 billion euros more.Total debt payment for 2015 29 billion euros, almost 33 billion U.S. dollars.If you think this is a small amount for a country with 11 million of population please think again.
The debt owed by Greece is A joke compaired to the most indebt country on the earth. The one that will eventually bring on a world wide Depression the Likes of which the world has never seen.Compare Greeces Debt to that of United States. And If you can add 2 + 2 You should Know what’s coming.
Unfortunately you are right Mr. Carlson.Four months ago Greek financial minister ask for a international meeting as Breton Woods in 1944, to discuss the world debt and to find a solution .Nobody paid attention to his idea.He was teaching at the University of Texas, so he knows what is happening with the US debt. So be ready for the mother of all financial crisis in the world’s history.
All these comments about Greece could equally apply to the USA (times 1000)
The only difference is that America prints its own money and for some reason creditors accept it.
But for how long will THAT last?
Just the beginning!
Greece can’t pay money it does not have. Their pension system must be changed. The probability for collapse is driving a flight of money to American markets, considered the most stable place to put money by investors. Greece will not go to Russia or China. The most damage will be to those who unfortunately extended more credit to a broke system. There is no substitute for productivity. This same problem exists in America.
Of course a deal will be reached because these guys in Brussels very well realise that if Greece leaves the eurozone things may get out of control very quickly given the actual consensus among the european people where we see more and more euroscpeticism by the day through protests in major big cities all over Europe. They just can’t afford to take the risk because they want to continue to implement their sick ideology at all cost and stay in power to be able to fill their own pockets (Brussels is corrupt to the bone, euroministers show up late monday evening to clock in to touch their monday allowance and leave early friday while taking care to clock out. Art exhibitions with rich buffets with champaign free for all euro personnel. etc etc etc etc. In short a BLACK HOLE!!!) And Tsipras is playing bluff till the very end but will give in on major points although this is going top backfire at him when het gets home so he isn’t going to be as popular as when he got elected. But who cares, that’s how politicians function. They say one thing and do another. Not on has got the balls to call it quits and clear this mess up finally. Christine Lagarde of the IMF had already returned to Washington earlier this week since she considered the greeks wouldn’t do what the troika imposes so useless to hang around. Guess what….she’s back again. It’s all just to confuse the shit out of the taxpayer who doesn’t understand the stakes very well and where all this phoney money comes from that the ECB lends to the greek banks (6 billion over the last week in emergency bank funding !!!!). The greeks might as well massively print more euros themselves because it boils down to the same thing doesn’t it? Every penny (rather BILLIONS of euros) given to them we can kiss goodbye. Everyone knows it but we keep sticking our head in the sand. Until the whole thing goes bust and we find ourselves all in deep trouble. Just kick them out, they should have never been allowed into the EU anyway. Limit the losses before the whole Titanic goes to the bottom.
What a circus !!!!!
It is not a question of if but rather when Greece will leave the Euro. This will be followed by Portugal, Spain, Italy and possibly Ireland. The union is doomed and I expect the Euro to go to zero. Money to be made here!
Sorry Larry but I think isn’t clever to think with that way.If Euro goes to zero, the U.S. Dollar will go to the sky.Then, all the exportable goods from USA will not find buyers all over the world.Millions of people in USA will lose their jobs, with all the consequences.It is a nightmare.
The world just can’t get over seeing debt as a good thing. The US is the leader of this problem. Dollar denominated debt has expanded from 52.7 Trillion in 2007 to 59 trillion now.
If the world wants economic stability they need to balance budgets, period. Obviously a period of pain must result to achieve that. But that pain resolves the issue of Moral Hazard, where government creates artificial economies that are even more prone to collapse. My impression is that debt is only recently starting to be viewed as promoting instability with examples like Greece. Unfortunately we had leaders like Bernanke, Bush the EU who have chose greater instability than addressing the problem.
Before it’s all through world society will understand that nonproductive debt creates instability rather than the panacea it was thought to create.
Greece is simply the largest domino preparing to fall. This is not going to stop because the world’s economy is built on nothing but promises.
There isn’t enough gold, diamonds, oil, natural gas, rare earth minerals, real estate and … to cover the debt of the world to it’s creditors.
And once the dominoes do start to fall, the pace will pick speed to the point it can’t be stopped.
Add to that a greater and increasing populous standing with their hands out and fewer and fewer producers(workers) paying enough in taxes, politicians addicted to spending tax dollars to maintain their power that the “end of road” is a brick wall, the “light at the end of the tunnel” is an oncoming train.
The best one can do is get their own house in order and do everything one can to ride out this storm.
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The current Greek socialist leaders are apparently not able to deliver what is needed to
assure the other currency union members that they are on the right track. Even if they
come close to satisfying the requirements their party members will not go along, and
new elections will be required probably later this summer. Strange that Spain, Portugal,
and Ireland are well on their way to recovering from near disaster in 2009, but the
Greeks still think they will be rescued in the name of unity. That will probably not happen.
To have an expanding economy you have to have an expanding money supply . The only way the money supply can increase is through new debt . Catch 22